2015. Survey of decorating Concepts S X Company is com Company is considering replacing one of its machine order to seeing wachime we 567.000 per year operating costs with the w Operating t h e he will cost $68.000 and will last for six years, ine d to be the which t o sto six more years but will not be worth anything at that the be the cost $340 57.000. Assuming year discount rate of s what is the w with ent in th e with the new machine? 9. AO $59.810 BO 574 800 CO 893,500 DO $116.375 EO S FOSSET 8 pt X Company is planning to launch a new product. A market research study cost $100.00, ws courted last year, indicating that the product will be successful for the next four years. Profits from sales of the product seeded plans to m ake to be $162,000 in each of the first two years and S107.000 in each of the last two years. The the an immediate advertising campaign that will cost $75.000 Nemacturing equipment will be to be what is the $350,000; it will have n o disposal value at the end of the four years. Asing a discount rate of present value of launching the new product? CO 856.667 DO 366,300 EO 8775TI FO 50,75 BO $18.233 10. AO $41.396 8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $49,000, and Machine Boost 368,000. Fatimated t the Machine A or Machine B. The whol life of both machines are as follows al cash flow with the two Year Machine A Machine B S-6,000 5-7.000 -8,000 1,000 2000 -3,000 -8,000 -3.000 -6,000 -3.000 -5,000 -2.000 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in years)? 11. AO 2 BO 3 CO 4 DOS EO 6 FO7 USE THE PRESENT VALUE TABLES ON THE NEXT PAGE Present Value of $1.00 Triad 39 TE 17 1000 09 OOS ONNO 0.888 0.8.35 O. NERE 0 10.790 ON 0.760 10.NO 11 0.00 ONG 0.83 784 10.746 6 9 10 10.93 TL 0935 TO 09179 OND TOETS TO 0.826 0512 OOO516 792 0.75 01731 0702 0.763 OLOS O 077 0.71361 0.650 07621 0.705 0.666 0630 102306 0136445 0762303530170512 TO2 0.627 0.582 0.540 0.502 OG T0434 0.712 - 0.677 067 OLOT 07452 0.404 Present Value of an Annuity of $1.00 Period 3 2 1 3 4 0971 .913 2.829 3.717 4.580 5.417 6.230 7020 3 0 002 INNO 2.775 3630 4.452 5.242 6.002 6733 1 % 0.932 1.839 12.723 13566 4.329 5.076 5.786 646 6% 7% 0.9430 .935 1.833 1.808 263 2.624 3 .465 3.357 4.212 4.100 191174.767 5.582 5.389 6 6210 210 5.971 971 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 717 9% 10% 11 T 0.917 0909 1.7391.736 1.31 223312487 3.240 3.170 3.102 303 3.800 3.791 3.696 3.605 4.486 4.3114231 5.033 4.868 4 .712 4.564 5.535 5.335 3.40 4.968 7 8 ed from LON.CAPADNSU 2015. Survey of decorating Concepts S X Company is com Company is considering replacing one of its machine order to seeing wachime we 567.000 per year operating costs with the w Operating t h e he will cost $68.000 and will last for six years, ine d to be the which t o sto six more years but will not be worth anything at that the be the cost $340 57.000. Assuming year discount rate of s what is the w with ent in th e with the new machine? 9. AO $59.810 BO 574 800 CO 893,500 DO $116.375 EO S FOSSET 8 pt X Company is planning to launch a new product. A market research study cost $100.00, ws courted last year, indicating that the product will be successful for the next four years. Profits from sales of the product seeded plans to m ake to be $162,000 in each of the first two years and S107.000 in each of the last two years. The the an immediate advertising campaign that will cost $75.000 Nemacturing equipment will be to be what is the $350,000; it will have n o disposal value at the end of the four years. Asing a discount rate of present value of launching the new product? CO 856.667 DO 366,300 EO 8775TI FO 50,75 BO $18.233 10. AO $41.396 8 pt X Company must replace one of its current machines with machines is seven years. Machine A costs $49,000, and Machine Boost 368,000. Fatimated t the Machine A or Machine B. The whol life of both machines are as follows al cash flow with the two Year Machine A Machine B S-6,000 5-7.000 -8,000 1,000 2000 -3,000 -8,000 -3.000 -6,000 -3.000 -5,000 -2.000 -4,000 -2,000 If X Company buys Machine B instead of Machine A, what is the payback period (in years)? 11. AO 2 BO 3 CO 4 DOS EO 6 FO7 USE THE PRESENT VALUE TABLES ON THE NEXT PAGE Present Value of $1.00 Triad 39 TE 17 1000 09 OOS ONNO 0.888 0.8.35 O. NERE 0 10.790 ON 0.760 10.NO 11 0.00 ONG 0.83 784 10.746 6 9 10 10.93 TL 0935 TO 09179 OND TOETS TO 0.826 0512 OOO516 792 0.75 01731 0702 0.763 OLOS O 077 0.71361 0.650 07621 0.705 0.666 0630 102306 0136445 0762303530170512 TO2 0.627 0.582 0.540 0.502 OG T0434 0.712 - 0.677 067 OLOT 07452 0.404 Present Value of an Annuity of $1.00 Period 3 2 1 3 4 0971 .913 2.829 3.717 4.580 5.417 6.230 7020 3 0 002 INNO 2.775 3630 4.452 5.242 6.002 6733 1 % 0.932 1.839 12.723 13566 4.329 5.076 5.786 646 6% 7% 0.9430 .935 1.833 1.808 263 2.624 3 .465 3.357 4.212 4.100 191174.767 5.582 5.389 6 6210 210 5.971 971 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 717 9% 10% 11 T 0.917 0909 1.7391.736 1.31 223312487 3.240 3.170 3.102 303 3.800 3.791 3.696 3.605 4.486 4.3114231 5.033 4.868 4 .712 4.564 5.535 5.335 3.40 4.968 7 8 ed from LON.CAPADNSU